Dow Corning hits record sales, profits

Published 7:28 am, Friday, February 4, 2011

Dow Corning Corp. had $1.58 billion in sales in the fourth quarter of 2010, lifting full-year sales to a record $6 billion and net income to a record $866 million.

For the year, sales increased 18 percent and net income increased 45 percent over 2009, the company reported today. Adjusted net income was $724 million, an increase of 29 percent from the year before.

“2010 was an excellent year for Dow Corning, especially given the economic volatility which continues to impact some industries and regions,” said Dow Corning Executive Vice President and Chief Financial Officer J. Donald Sheets. “Our ability to achieve record sales in this economic environment is indicative of Dow Corning’s innovative product portfolio, expanded geographic footprint and effective business model.”

The company said it saw significant growth in Asia and Latin America, resulting in record sales in those regions. Sales also grew across all developing geographic regions.

“Dow Corning’s silicones business continued to grow, especially in electronics, life sciences, solar and industrial applications,” Sheet said. “Our strong performance in silicones is a direct result of Dow Corning’s ability to deliver innovative silicone-based solutions and reach new geographic markets through our two-brand strategy.”

Dow Corning’s polycrystalline silicon business through Hemlock Semiconductor Group had another solid year as new capacity came online in 2010, Sheet said.

“The expansion activities at Hemlock Semiconductor’s Michigan and Tennessee facilities continue and are expected to be completed as scheduled,” he said.

Looking forward, the company is well positioned for growth but could see some challenges, including rising raw material and energy prices, Sheets said.

“Dow Corning and Hemlock Semiconductor are well positioned for continued growth with several capital projects complete or under way to boost our manufacturing capacity and research and development capabilities globally,” he said.